Pi Network falls after lawsuit; top whale keeps buying
Pi Network (PI) price declined to $0.22 on Dec. 8, its lowest since Nov. 16 and about 23% below the Nov. 28 high, after details of a U.S. lawsuit became public. Plaintiff Harro Moen accuses Pi Community Company, SocialChain and founders Chengdiao Fan and Nikolas Kokkalis of “massive fraud,” alleging secret sales of 2 billion tokens, deceptive token transfers, delayed migrations and centralisation via three company-controlled validator nodes. Pi’s team has not responded. Despite legal pressure, on-chain data show a major whale increased holdings: moving 1.62 million PI from OKX three days earlier and 430,536 PI on Sunday, plus smaller transfers from Gate.io, bringing the whale’s total to about 390.97 million PI (~$86 million). Technical indicators are bearish: PI trades below the 50-day EMA, the Relative Strength Index is under 50, and price is attempting to move below the Supertrend; immediate support is near $0.20. Longer-term analysts note a possible Wyckoff-style accumulation phase, suggesting rebound potential if accumulation continues. Key takeaways for traders: heightened legal risk can amplify volatility and selling pressure; whale accumulation may provide a floor or signal expectation of recovery; monitor on-chain whale flows, exchange withdrawals, legal developments and technical levels (support $0.20, resistance near recent highs) to time entries and manage risk.
Bearish
The news combines increased legal risk with bearish technical indicators, creating downward pressure on PI in the short term. The lawsuit alleging fraud and secret token sales raises regulatory and reputational exposure that can trigger selling, delistings, or reduced listing appetite from exchanges — all of which historically depress prices (similar to token projects facing fraud suits or major regulatory actions). Technicals reinforce this: price below the 50-day EMA, RSI under 50 and a potential Supertrend breakdown signal further downside toward the $0.20 psychological support. However, notable whale accumulation moderates the bearish outlook by supplying buy-side demand; large holders moving tokens off exchanges often indicate long-term confidence and can form a floor, as seen in past events where coordinated accumulation preceded recoveries. Traders should expect elevated volatility: short-term bias is bearish until legal clarity or a sustained reclaim of technical levels occurs. Monitor on-chain whale flows, exchange withdrawal patterns, legal filings and whether major venues delist or list PI. Use tight risk controls — consider scaling in only after observing sustained accumulation and a technical reversal (e.g., price above 50-day EMA and RSI >50) or if whale accumulation continues without additional negative legal developments.